Hope for hardship cases

Hope for hardship cases during bank charge appealWhich? calls for hardship cases to be fast-tracked

20 June 2009
As the House of Lords scrutinize bank charges, Which? today calls on the Financial Services Authority and financial providers to take action to ease the plight of consumers suffering financial hardship.
As the House of Lords prepares to hear the latest appeal in the bank charges test case next week, Which? chief executive, Peter Vicary-Smith, says, 'It's disappointing that nearly two years since this saga began, little has changed for the millions of consumers being hit with these charges.
'If you're struggling with basic living costs such as rent and utility bills then you may be eligible to get your claim fast-tracked under the terms of the waiver. The FSA must take action against any bank ignoring the financial plight of its customers.'

If you think you might qualify to get your claim fast-tracked, you can get more information in the Which? guide to reclaiming bank charges.
What is financial hardship?

The FSA definition of financial hardship is: 'A complainant is considered to be in financial difficulty when his or her income is insufficient to cover reasonable living expenses and meet financial commitments as they become due.'
This means that anyone struggling to pay their rent, utility bills and council tax or being unable to meet financial commitments such as mortgage or loan repayments may be able to have their claim fast-tracked. The FSA waiver, which has been in place since July 2007, says that banks and the Financial Ombudsman (FOS) must process the claims of people in financial hardship.
What should consumers do?

The hardship rule applies for existing claims as well as new ones so if you have a claim in the system and now find yourself in financial difficulties, you can ask your bank or the Ombudsman – depending on which stage your claim has got to – to deal with your case.
Template letters are available in the Which? guide to reclaiming bank charges.

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[Amethyst]

Re: Hope for hardship cases

Why is this suddenly news ? has the hardship clarification from noveber 07 only just filtered through to these people ? anyway all publicity on the matter has to be good , just a bit odd its coming up now - i assume with the test case appeal hearings this week its a good time to get info out whilst the press is interested....

[Amethyst]

Re: Hope for hardship cases

Oh and the banks will come back saying they dont have to repay any charges under the waiver terms - we need to point out the para in the march 19th guidance to firms that says they should consider it....lots.


this bit

V) firms to provide a range of measures to support customers and to treat them positively and sympathetically
nb2)firms are also refered to sections 14.2 and 14.3 of the guidance to the banking code.
these might include: help and guidance about dealing with fd and avoiding charges; suspending collections and recovery activity; suspending accrual of further interest and charges; consideration of a refund of charges, in particular where the charges may have added to the FD during, or immediately before, the period of FD. The rationale for why a particular level of refund has been given should be documented and clearly explained to the complainant.

[natweststaffmember]

Re: Hope for hardship cases

That part in bold means the claimant arguing that the lifestyle change, ie fridge breaking, for example, took money away from the budget leading to priority debt arrears and exacerbated by the charges themselves. That would mean arguing for a refund of charges during that period of hardship...hmmmm.,